What is a remortgage?
In simple terms, remortgaging is where you pay off your existing mortgage and move to another lender. The main reasons people remortgage their properties are:
- To obtain a better interest rate.
- To have more flexibility regarding repayments.
- To consolidate debt.
- To borrow extra money for another purpose such as renovations to their property.
Are there any disadvantages to remortgaging?
You need to think about the price of remortgaging and whether or not the costs outweigh the benefit. Some lenders do offer ‘no fee’ deals but many companies will require you to pay for valuations and an administrative fee.
Regulations regarding mortgage lending have been tightened recently so you may find your finances are scrutinised very closely when applying for a remortgage. Lenders are now required to ‘stress test’ your finances to ensure that not only can you afford the repayments at the current interest rate but also if the rates were to rise. The process is likely to take longer now than it did so in the past.
Do I need to engage a lawyer to remortgage?
Yes, as there are legal processes that need to happen regarding the legal title of the property, charges attached to the property and Land Registry filings.
Some mortgage providers offer deals whereby they will pay some or all of your legal costs. You do not need to use the lender’s legal provider as you are entitled to appoint you own lawyer to manage your side of the process.
Why use Bennett Oakley Solicitors?
At Bennett Oakley we understand that if you are thinking about switching mortgage advisers it is likely that you are doing so for a particular reason. We can offer solid, practical advice regarding the advantages and disadvantages of remortgaging your property and we will strive to turn the transaction around as quickly as possible for you.
